1. Tax management: Sales tax processing
Calculating and reporting taxes in Microsoft Dynamics® AX 2012

2. Flexible setup and tax calculation
Tax codes specify settings and rules for calculating a specific sales tax.
Tax codes are grouped into sales tax groups and item sales tax groups.
Sales tax groups are assigned to data entities such as customer or vendor.
Item sales tax groups are assigned to specific items.
Sales tax codes within a given sales tax group and item sales tax group determine the taxes to be calculated for a transaction line.

3. Business value: Complete functionality for reporting and paying taxes
Sales tax reporting codes can be assigned to tax codes to calculate total taxes for periodic reporting.
A periodic sales tax payment job posts taxes to tax settlement accounts and generates tax reports in country/region-specific formats.

4. Sales tax conceptual model

5. Determining taxes example
The following diagram represents a sales order with two lines.
Customer
Line 1 / Item A
Line 2 / Item B
Sales Tax Group
Item Sales Tax Group
A sales tax group is assigned to Customer; item sales tax groups are assigned to Items A and B.
Sales Tax Codes A B D F H C E
Sales tax codes A–H are assigned to the sales tax group and item sales tax groups.
Matching sales tax codes in the sales tax group and item sales tax groups are used to calculate and post taxes (tax codes B and H for line 1; C, E, and H for line 2).

6. CCAX2012DI0005